DAC6 and the Cyprus Law


From 10:00 am until 1:45 pm

At Nicosia, Cyprus

€530.00 (subject to 19% VAT)

Course Overview

The main purpose with DAC 6 is to prevent tax avoidance and evasion in the form of aggressive tax planning. The implementation of the EU directive means that member states of EU are obliged to implement mandatory disclosure rules for cross-border arrangements. The DAC 6 has been criticized for broad and vague formulation of central words which creates uncertainty for the application. Further, broadly worked hallmarks and wide information required to be filed creates danger for disproportionality. The programme intends to investigate whether the Cyprus implementation of the directive is a proportionate measure to prevent tax avoidance and evasion in the form of aggressive tax planning. In order to do so, the DAC 6 is first described, since the Cyprus implementation is based on the directive. The Cyprus government’s interpretation is further explained as well as the expected benefit and costs of the rules.

The programme continues the discussion on the balancing of the collision between tax measures and procedural rights. In DAC6, regulators will impose a duty upon intermediaries (and on taxpayers, in few cases where intermediaries are excused) to disclose certain information at the earliest possible stage of tax planning. Such an unprecedented approach to regulation reflects the resolve of Member States to fix a systemic problem in the international tax system which businesses, particularly large multinational enterprises, exploit through aggressive or abusive tax avoidance. It is clearly a demanding approach to regulation and overrides the freedom and initiative of businesses. It confirms that the default legal or regulatory regime placed a higher value on the power to tax over procedural rights.

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Training Objectives
  • To describe DAC 6 and critically analyse these new Mandatory Disclosure Rules as a new development in the public management of tax avoidance
  • To Comprehend DAC6 as a permanent change in the relationship between the Tax Authorities on the one hand and intermediaries and taxpayers on the other hand.
  • To elaborate on who possibly might have an obligation to disclose reportable cross-border arrangements: intermediaries, assistant intermediaries, and taxpayers.
  • To critically assess which cross-border arrangements may indicate aggressive tax planning and need be reported beforehand to the Tax Authorities
  • To cover the hallmarks and the main benefit test set out in this Directive.
  • Reasonable security safeguards should be used to protect personal data from loss, unauthorised access, destruction, use, modification, or disclosure
  • To explain the order of reporting obligation, exemptions, and reporting deadlines
  • To assess critically how the Cyprus government has interpreted and approached the DAC6
  • To assess critically the expected consequences of the Cyprus implementation including the expected benefits and costs of MDR
  • To determine if the Cyprus implementation is a proportionate measure to prevent tax avoidance and evasion in the form of aggressive tax planning

  • Training Outline

    The EU Directive on MDR (DAC6)

  • Background
  • Salient Features of DAC6
  • Reportable Arrangements
  • Information to Be Reported
  • Reporting Responsibilities
  • Overlapping Reporting Obligations
  • Timing Aspects
  • Penalties for Noncompliance
  • Conclusive remarks
  • Hallmarks of Reportable Arrangements

    Generic vs. Specific Hallmarks

    Hallmarks Subject to the MBT

    Generic Hallmarks Linked to the MBT

    Specific Hallmarks

  • Specific hallmarks linked to MBT
  • Specific hallmarks related to cross-border transactions
  • Hallmarks Not Subject to the MBT

    Specific Hallmarks

  • Specific hallmarks related to cross-border transactions
  • Specific hallmarks concerning automatic exchange of information
  • Specific hallmarks concerning beneficial ownership
  • Specific hallmarks concerning transfer pricing
  • The MBT

    Developing a Reasonable Approach

    Application to International Investments

    GAAR Considerations

    Determining Reportable Arrangements

    Cyprus implementation

  • Introduction
  • Who bears the burden of disclosure
  • Penalties
  • Consequences
  • Criticism
  • Summarized analysis
  • Human Rights Perspectives on Mandatory Disclosure Rules on Intermediaries

  • Taxation and Human Rights
  • General Considerations
  • Human Rights in the EU
  • DAC6 and Human Rights
  • Right to Property
  • Right to Privacy and Related Rights
  • Right to Fair Trial and the Right against Self Incrimination
  • Conclusion

  • Who Should Attend
  • Employees and executives of financial entities (such as banks, CIFs, Investment Managers, etc)
  • Lawyers and legal professionals
  • Accountants
  • Compliance professionals
  • Operations Managers and Teams
  • Risk professionals
  • Tax Professionals
  • The programme is also ideal for all those who aim to obtain their CPD training, as required by CySEC, CyBAR, and the ICPAC.

    Industry Expert | Demetris Savvides

    Demetris Savvides holds degrees in law, management and criminology and has been a lecturer in for more than nine years in the field of business law and management having taught numerous courses in business, corporate, taxation, GDPR and criminology, with an extensive record in academic publications in internationally renowned business journals. In addition, Demetris Savvides is an experienced corporate lawyer helping hundreds of companies in their normal functioning, engaging in transactional and legal advisory including advisory relating to day-to-day business regulatory issues, GDPR implementation matters, and corporate tax planning. Tending to clients, both domestic and international, Demetris Savvides has gained vast experience in dealing with business matters right from inception and catering to the regular corporate and compliance needs for successful functioning to empowering companies to scale to their potential. Demetris Savvides has had a notable track record of advising clients in corporate transactions that are vital for their business. His overall commercial corporate experience has both the in-depth knowledge of business laws and corporate finance as well as the practical advantage of for providing all-round service to the companies, which encompasses corporate commercial and tax structuring of a business whether domestic or through foreign investment, process incorporation via sustainable models which optimize the needs of the business, day to day compliance process for smooth functioning, ensure optimum use and action of corporate finance, as well as strategizing takeovers or winding up at appropriate junctures.

    Training Style

    The programme is designed to deliver knowledge and enhance participants’ skills via short lectures, case-studies, practical examples, real-life simulations. Most of the training will focus in assessing participants’ current strengths and weaknesses via formal assessment tools. Participants will also benefit from customised feedback at the end of the programme and take away the knowledge gained to be transferred at their workplace. Most of the training’s time will be invested in analysing a real-life case studies that will help participants understand how to solve problems in similar occasions.

    CPD Recognition

    This programme may be approved for up to 14 CPD units in Accounting and Auditing. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

    The Cyprus Bar Association (CyBAR) has confirmed that this programme is accredited for 14 CPD units.

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